Eddie Hayson: How one of Australia’s biggest punters lost a $52 million bet — declaring himself insolvent

BROTHEL owner Eddie Hayson is on the brink of bankruptcy after declaring himself insolvent with $52 million in debts.

Hayson, one of Australia’s biggest gamblers, claims to be down to his last $100 and “boarding” in a waterfront northern beaches apartment after offloading most of his assets. The flamboyant punter, who recently announced he was selling his famed Sydney brothel Stiletto, filed for insolvency with the Australian Financial Security Authority on August 8.

The one-time racing identity has listed 12 creditors and the amounts he owes, including the Australian Tax Office ($4.2 million), Sportsbet ($1.6 million) and former rugby league star Luke Davico ($1 million). The move means Hayson’s dwindling asset pool will be put under the microscope by insolvency firm, Jones Partners, to see how much, if any, can be recovered for creditors. An offer will be made to creditors of an amount Hayson is able to pay.

Under law, the offer can be ­accepted if 75 per cent of creditors vote in favour. If the offer is rejected, Hayson, who listed his profession as “adult industry”, is at risk of being bankrupted or pursued in court. Sportsbet has already obtained a bankruptcy order against Hayson from the Federal Circuit Court in Melbourne. The insolvency documents revealed Hayson has been known as Edmund O’Brien and Edward Hayden in the past 10 years and paint a picture of a man in a financial corner.

In the past five years Hayson has “sold, transferred or given away” three Porsches, a BMW and a Lexus, the documents said. He sold three properties, including a mansion on Balmoral Beach and a Dural estate for either no profit or a six figure loss, according to property records. In the section that asks how much cash Hayson has on him or in the bank he entered “$100”.

The only property he claims to own, with his brother, is a townhouse in Waverton that he holds “as trustee pursuant to (the) will of Sadie Hayson”.

Hayson wrote he is owed $7.6 million by Hayson Bloodstock, the racehorse company he previously was a director of, which was put under external administration in April.

However, he expects the return on the loan to be “nil”.

Sydney brothel Stiletto in CamperdownSource:News Limited

While a date for the creditors’ meeting is yet to be set, The Sunday Telegraph can reveal seven of the 12 creditors are linked to Hayson through business or family networks.

One creditor is his brother, who loaned Hayson $6.6 million between 2009 and 2012, the documents said. Two others are Blackfeather Pty Ltd and Dalway Enterprises, which loaned Hayson $9.6 million and $9.2 million ­respectively, the documents said.

According to company records, Hayson is a director Blackfeather, which is under administration, and the company’s principle place of business is at Stiletto.

Dalway Enterprises owns the building that houses Stiletto and is owned by Anthony Sherlock, 72, of Mosman. Mr Sherlock was director of Hayson Bloodstock with Hayson and is the current director of Psyche Holdings which is listed to be owed $1.06 million by Hayson, the documents said.

“It’s well documented that I’ve had financial issues but I’m ­addressing them and I’d rather do it this way to be upfront and ­resolve the issues so I can move forward,” Hayson said.